Quote:
|
Originally Posted by Rick Latona
You know, you guys seem really expensive for free site traffic! I'd never pay that much for TGP traffic! What the fuck?  |
Well, yeah, we do run free sites. But that's the ONLY similarity to TGP's. You gotta understand, people visit TGP's for one reason and only one reason: to find porn WITHOUT paying for it. We're a whole different ballgame. We make up the world's largest archive of all the crazy/funny/disgusting/strange shit on the internet. Our archives go all the way back to 1999. People don't come to our sites (other than PornSavvy) looking for porn, let alone free porn. The only porn content we put up are the paid Video Sponsorships. Instead people come looking for the best variety of crazy and shocking shit. This is precisely why our traffic converts so well. Our surfers don't have a problem whipping out the credit card if they see something they like. Also, all our affiliate partners like TrafficCashGold, TopBucks, and PlatinumBucks tell us that our traffic retains really, really well.
As for how we come up with our pricing, the explanation is simple (the work behind it is a pain in the ass).
We base our pricing off what we can get by sending our traffic to the affiliate programs and the average number of clicks that a particular ad spot generates. When we send traffic to a particular site, if it doesn't convert 1 out of every 435 clicks we send over, we stop sending traffic to that particular site as we know we can do at least that well with other sites. So we look for a worse-case scenario of a conversion rate of 1/435.
The clicks that a particular ad spot generates vary from month to month so we update our pricing monthly. For example, take the Video Sponsorship on ConsumptionJunction.com. Based on last month's performance we should expect that spot to generate an average of 14,357 clicks. If we sent that traffic to one of the sites of an affiliate program we would expect to get 33 subscribers (14,357/435). So on traffic from ConsumptionJunction.com we average 1/435. This varies a bit from each of our sites and we incorporate that into the pricing of the different spots. For example, this is how we come up with the pricing for a Video Sponsorships on CJ:
We normally get an affiliate payment of $30 for each subscriber we create. So for one Video Sponsorship on ConsumptionJunction we make at least $990 ($30 X 33 = $990). I sell Video Sponsorships on ConsumptionJunction for $1000.
We handle the pricing on all our ad spots this way. Long story short, we sell the ad spots for what we can make off them. If you monetize our traffic as well as the affiliate programs that we base our pricing on, you can't help but make a profit. The affiliate programs make more money off our traffic than they pay out to us in commissions. They keep all the revenue from the rebills, exit consoles, check transactions, etc. They just pay us a flat commission and keep the profit. But our pricing is based off the commission, not the total amount of money earned from the subscriber. The bottom line is that you, as a site owner, can make more off our traffic than we can as affiliates.
When you buy traffic from us. You pay a flat-fee. No matter how long the sign-ups stick around and keep paying you, the cost for the traffic is the same. If you launch exit consoles to other sites and generate revenue from that, you still pay the same amount for the traffic. Every cent you make from when they click your ads on our sites is yours and you don't have to pay us anything on it.